Best Buy Selling iPhone X on Installment Plan Only After Criticism Over $100 Premium

Best Buy is no longer selling iPhone X and iPhone 8/8 Plus models outright following criticism of the $100 premium it was charging over Apple's retail prices, reports Bloomberg.

When pre-orders kicked off for the iPhone X on Friday, Best Buy was selling the full-priced 64GB model for $1,099 and the 256GB model for $1,249, $100 more than Apple asks for the two devices. Similar price increases were applied to iPhone 8 and 8 Plus orders.

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Best Buy only offers the iPhone X via carrier payment plan now

Best Buy confusingly said it was charging a premium because flexibility sometimes has a cost, and that by offering full-price iPhones, customers can "get a phone the way they want." The statement made little sense as the same full-price commitment-free iPhones are available from Apple and other retailers.

Rather than dropping its prices, Best Buy has decided it will no longer offer iPhone X, iPhone 8, and iPhone 8 Plus models for outright purchase, instead only selling them via carrier installment plans from Verizon, AT&T, and Sprint. The payment plans feature no extra charge, with the monthly device payments going directly to carriers.

"Although there was clearly demand for the un-activated iPhone X, selling it that way cost more money, causing some confusion with our customers and noise in the media," Best Buy spokeswoman Danielle Schumann said. "That's why we decided a few days ago to only sell the phone the traditional way, through installment billing plans."

When a customer purchases an iPhone via a carrier installment plan, Best Buy receives a payment from the carrier in question, but that payment is not received for iPhones at full price, which seems to be why Best Buy was charging an additional $100. No other retailer charges an additional $100 for the iPhone, though.

While Best Buy has stopped offering the latest iPhone models as an outright purchase sans installments, it is continuing to sell older models and charging a $50 premium on those devices when purchased without a carrier payment plan. The iPhone 7, for example, is priced at $599, $50 more than Apple charges.

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Top Rated Comments

840quadra Avatar
104 months ago
More proof that this company has lost it’s way.

Ashamed to drive past their headquarters 2 times a day.
Score: 31 Votes (Like | Disagree)
DEMinSoCAL Avatar
104 months ago
They have been doing this for years. When my dad bought an iPhone 4 on launch day from Best Buy he was surprised to find an extra $100 tacked on the bill vs what AT&T and Apple would’ve wanted. Don’t understand why it’s just now becoming a problem. That’s why I don’t buy phones from Best Buy anymore.

They were doing it on the iPhone 7 and 7 Plus too when I was looking at them a few weeks ago (shortly after launch of 8 and 8 Plus). They dropped the prices by $100, which brought them in-line with original MSRP, and didn’t reflect the new MSRP of $100 less all carriers and Apple were charging. They also don’t price match on phones.
Because the new trend is to make mountains out of mole hills it seems. Everyone here that is whining about it and how bad BB is, isn't even buying one from them, but feel they have to make a big deal about it.

There are SO MANY other scenarios in retail where the business is selling something for more than retail and people can't hand over their credit card fast enough. Ever buy wine in a fine restaurant? Twice the retail price, but to people swear and bad-mouth the restaurant and promise never to go back?

People here make no sense.
Score: 24 Votes (Like | Disagree)
826317 Avatar
104 months ago
If this isn't the definition of American greediness, I don't know what is.
Score: 21 Votes (Like | Disagree)
Brookzy Avatar
104 months ago
That's hilarious.

Imagine applying the same response to an Apple issue...

"In response to criticism at six-week wait times for the iPhone X, Apple has decided to stop selling it completely."
Score: 20 Votes (Like | Disagree)
Cyroceon Avatar
104 months ago
As if they needed any more reason to join Sears on the Soon to be Bankrupt Companies List.
Score: 15 Votes (Like | Disagree)
swissglide Avatar
104 months ago
LOL, BestBuy does a shameless money grab operation, gets called out on it, throws a temper tantrum, drops the ball, and goes home. Waa, waa.
Score: 14 Votes (Like | Disagree)